Google misses earnings expectations
It's the first miss for the company in 2 years.
Google (GOOG) late Thursday reported net income of $1.84 billion, or $5.71 a share, a 24% increase from the $1.49 billion, or $4.66, it earned a year earlier.
Excluding items, earnings were $6.45 per share, missing expectations for $6.52. It was Google's first earnings miss since the second quarter of 2008.
Excluding revenue passed on to partner sites, sales were $5.09 billion, topping expectations for $4.98 billion.
Google's shares slumped $26.14, or 5.3%, to $467.88.
Google remains "best positioned to benefit from the recovery in ad spending and overall growth in Internet usage," FBR Capital's Heath Terry wrote in a note to clients. Terry cautioned that "spending growth, regulatory scrutiny, and growing competition on multiple fronts remain risks."
The company said its paid clicks, or the number of times that users click on its advertisements and generate revenue, rose 15% from the second quarter of 2009, flat with the first quarter. Analysts had been looking for an increase of between 15% and 17%.
The prices paid for clicks on Google's advertisements rose 4% from the same quarter last year.
Google also said it added 1,184 employees during the second quarter, its most active hiring period since the first quarter of 2008.
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[BRIEFING.COM] The stock market ended the holiday-shortened week on a mixed note as the Dow Jones Industrial Average shed 0.1%, while the S&P 500 added 0.1% with seven sectors posting gains.
Equity indices faced an uphill climb from the opening bell after disappointing quarterly results from Google (GOOG 536.10, -20.44) and IBM (IBM 190.04, -6.36) weighed on the early sentiment. Google reported earnings $0.15 below the Capital IQ consensus estimate on revenue of $15.42 ... More
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